KBLI 2020 · 5-digit class

38301Metal Scrap Recovery

Pemulihan Material Barang Logam

Last updated · Sourced from OSS Indonesia

This group includes the processing of used metal items and metal waste into secondary raw materials. The results of recycling/recovery of metal materials are secondary raw materials in various forms such as metal scraps or shavings and others. Activities in this group include the separation and sorting of metal waste, mechanical crushing of metal waste, mechanical reduction of metal waste, dismantling, cutting, and slicing of metal waste, ship breaking, and others. The production of new metal items using secondary raw materials, used metal items, and metal waste is included in the appropriate industrial group.

For foreign investors · KBLI 38301
100% PMA

Yes — open to PMA up to 100%.

Operating license routes through Ministry of Environment & Forestry, not OSS — Emerhub handles the application end-to-end.

Foreign ownership
100% PMA
Sector regulator
Ministry of Environment & Forestry (KLHK)
Min. paid-up capital
IDR 2.5B paid-up · BKPM Reg. 5/2025
Issuing authority for PMA
Minister/Head of Agency
Ministry-issued
Risk + license type
High·NIB + Operating License (Izin)
Setup timeline
PT PMA 4–8 weeks; Emerhub files the Operating License (typically 2–6 months ministry review).

What's specific to this sector

  • 01

    Hazardous-waste handling (B3) requires a separate KLHK permit.

  • 02

    AMDAL typically required for treatment facilities.

Get a verified setup plan for KBLI 38301Read the full regulatory profile

KBLI 38301 at a glance

KBLI code
38301
Taxonomy version
KBLI 2020
Activity (English)
Metal Scrap Recovery
Activity (Indonesian)
Pemulihan Material Barang Logam
Category
Water Treatment, Wastewater Treatment, Waste Material Treatment and Recovery, and Remediation Activities
Risk level (Large scale, PMA)
High
Foreign ownership status
Fully open to PMA (100%)
Minimum capital (PT PMA)
IDR 2.5 billion paid-up + IDR 10 billion+ commitment per KBLI (BKPM Reg. 5/2025)
Primary licensing instrument
NIB
Issuing authority (PMA)
Minister/Head of Agency
Tax incentive eligibility
None recorded
Last verified
April 24, 2026
Source: OSS Indonesia + BPS Peraturan 7/2025 + BKPM
§ 01

Foreign investment rules

Indonesia's BUPM (Investment Business Fields) regulation places this code into one of five tracks. The track determines whether a foreign investor (PMA) can operate in this activity at all, and under what conditions.

Status · open

Fully open to foreign investment

KBLI 38301 is not on Indonesia's closed, conditional, SME-reserved or partnership-required schedules. A foreign investor may incorporate a PT PMA with up to 100% foreign ownership and operate in this activity directly.

This KBLI is not listed in any restricted, closed, SME-reserved or partnership-required schedule under Pres. Reg. 10/2021 (as amended). A 100% foreign-owned PT PMA may operate in this activity, subject to the licensing requirements shown below. BKPM's default minimum capital is IDR 2.5 billion paid-up with IDR 10 billion+ total investment commitment per KBLI realised over time, but sector regulators (OJK, ESDM, BPOM, Kominfo, etc.) can set higher minimums for specific activities — we confirm the actual figure before incorporation.
§ 02

How we handle your KBLI 38301 setup

Emerhub is a corporate-services provider in Indonesia. We do the legal and regulatory legwork for foreign investors so you can focus on the business itself. Here's what the engagement looks like.

  1. 1

    Confirm the optimal structure for your business

    2–3 business days

    We confirm KBLI 38301 is the right primary code for your business, advise on secondary codes you may also need, and finalize the holding structure with you before any filing.

    What we need from you
    • Founders' passport copies and proof of residence
    • Intended share split and board composition
  2. 2

    Incorporate your PT PMA

    7–10 business days

    We draft the Articles of Association before a notary, register the entity with the Ministry of Law & Human Rights (Kemenkumham), and obtain the company's tax ID (NPWP). Under BKPM Reg. 5/2025, paid-up capital is IDR 2.5 billion (~USD 160K) — the cash actually deposited at incorporation. The IDR 10 billion+ figure many sources still cite is the total investment commitment per KBLI, realised over time via your LKPM reports.

    What we need from you
    • Powers of attorney (we prepare; you sign and notarize)
    • Director / commissioner appointment letters
    • Initial capital deposit confirmation
  3. 3

    We obtain your NIB

    1–2 business days

    We file the OSS application with KBLI 38301 as your primary business activity, complete the risk-based assessment, and collect the NIB (Business Identification Number) for you — typically within hours of submission. You don't need to touch the OSS portal.

    What we need from you
    • Office address (virtual office acceptable for many KBLIs; we can arrange one)
  4. 4

    Secure your full Operating License (Izin)

    7+ business days

    NIB is issued for the preparation stage. Commercial operation requires a full Operating License (Izin) issued by the competent ministry after a substantive review of the operator's capability, facility, and compliance. Operating with NIB alone exposes the entity to penalties, blacklisting, and contract invalidation. We prepare the application bundle, liaise with the competent ministry, and chase issuance through to the certificate. Statutory turnaround: 7 business days — real-world timing typically runs longer when site inspections or additional clarifications are requested.

    What we need from you
    • Technical documentation specific to your operation
    • Appointment of a Penanggung Jawab Teknis (PJT — technical responsible person)
  5. 5

    Hand-off to ongoing compliance

    Ongoing

    Post-launch we run your monthly tax filings, quarterly LKPM (Investment Activity Reports), annual general meeting (RUPS), and any sector-specific reporting. You get a single point of contact and a monthly compliance digest — no Indonesian-language paperwork on your desk.

Get an exact quote and timeline for KBLI 38301, scoped to your specific business plan.
Request a quote
§ 03

What is KBLI 38301?

A plain-English explanation of this classification and the businesses it covers.

KBLI 38301 (Pemulihan Material Barang Logam) is the 5-digit Indonesian Standard Industrial Classification code for metal scrap recovery. It sits within Water Treatment, Wastewater Treatment, Waste Material Treatment and Recovery, and Remediation Activities under the subgroup Material Recovery (major group 38) in the official KBLI 2020 taxonomy maintained by Statistics Indonesia (BPS).

This group includes the processing of used metal items and metal waste into secondary raw materials. The results of recycling/recovery of metal materials are secondary raw materials in various forms such as metal scraps or shavings and others. Activities in this group include the separation and sorting of metal waste, mechanical crushing of metal waste, mechanical reduction of metal waste, dismantling, cutting, and slicing of metal waste, ship breaking, and others. The production of new metal items using secondary raw materials, used metal items, and metal waste is included in the appropriate industrial group.

Who needs KBLI 38301?

Any Indonesian or foreign-owned entity that intends to operate in metal scrap recovery as a primary or secondary business activity must select this code on its NIB (Business Identification Number). The selected code determines the licensing instruments required, the issuing authority, and the ongoing compliance obligations.

Why does the code matter?

Indonesia's OSS Risk-Based Approach uses the KBLI code to determine three things: (1) whether foreign investment is permitted and at what cap, (2) the risk-based licensing instruments required, and (3) the authority that issues each instrument. Choosing the wrong code can delay or invalidate your license.

§ 04

Under the upcoming KBLI 2025

Indonesia's BPS published the new KBLI 2025 taxonomy in early 2025. OSS, BKPM and the operating ministries have not yet adopted it — KBLI 2020 remains the active standard for business registration. This is what's coming for this specific code.

Carried forward into KBLI 2025

KBLI 38301 retains the same code number and scope in the new taxonomy. The activity description, hierarchy, and intended use of the code are preserved.

  • ·Continue using 38301 for current registrations under KBLI 2020.
  • ·When OSS adopts KBLI 2025 (timing not yet announced), no migration is required for this code.
  • ·Risk level, permits, and authority routing shown above remain in effect under both taxonomies.

When OSS adopts KBLI 2025, we'll migrate your existing entity to the appropriate successor code as part of ongoing compliance — no action needed on your end now.

Talk to a specialist
§ 02

Risk level by business scale

Indonesia's OSS Risk-Based Approach assigns a separate risk level for each of the four business scales. The licensing instruments required (NIB, Standard Certificate, Operating License) are determined by the risk level. Foreign-owned entities (PT PMA) must register at the Large scale, so the rightmost column applies to most foreign investors.

01

Micro

Usaha Mikro
≤ IDR 2 B turnover
Medium-Low risk
NIB + self-declared Standard Certificate before invoicing.
02

Small

Usaha Kecil
IDR 2 – 15 B
Medium-Low risk
NIB + self-declared Standard Certificate before invoicing.
03

Medium

Usaha Menengah
IDR 15 – 50 B
Medium-Low risk
NIB + self-declared Standard Certificate before invoicing.
04

Large

PMA scale
Usaha Besar
IDR > 50 B
High risk
NIB + full Operating License (Izin) before invoicing.
What does each risk level require to operate? ›
Low. NIB alone is sufficient for both preparation and commercial operation. Issued instantly via OSS.
Medium-Low. NIB enables preparation only. Commercial operation requires a self-declared Sertifikat Standar (Standard Certificate). Operating with NIB alone is not legally compliant.
Medium-High. NIB enables preparation only. Commercial operation requires a Sertifikat Standar verified by the competent ministry — typically with a site or document inspection.
High. NIB enables preparation only. Commercial operation requires a full Operating License (Izin) issued by the competent ministry after substantive review.
Beyond OSS, sector-specific permits commonly apply on top — e.g. SBU for construction, BPOM for food/cosmetics/medicines, OJK for financial services, IUP for mining, PSE for digital services. See the industry-specific guidance below for what applies to this KBLI.
§ 05

Licensing requirements in detail

Specific permits, application requirements and ongoing obligations vary by business scale and the sub-activity within this KBLI. We file these on your behalf — this section is for transparency on what we'll be handling. Switch between scales below; by default we show Large (the PMA scale).

What's required to operate
NIB
Preparation only — additional permit needed below
Operating License (Izin)
Important: NIB is issued for the preparation stage. Commercial operation requires a full Operating License (Izin) issued by the competent ministry after a substantive review of the operator's capability, facility, and compliance. Operating with NIB alone exposes the entity to penalties, blacklisting, and contract invalidation.
Processing time
7Days
Statutory turnaround

Application requirements

5

Documents and capabilities you must demonstrate at registration

  • 01Have an organizational structure document that includes the availability of human resources with technical competencies relevant to the service business.
  • 02Have documents detailing the type and volume of raw material requirements as well as the amount of energy needed to operate the service business.
  • 03Have a work agreement document between the company and competent workers to provide services with the status of permanent employees or contract employees for a minimum of 1 year, with at least the following number of employees: 2 managers, 2 professionals/supervisors, and 4 technical/operational/staff.
  • 04Have a flowchart document: a) business process for service sales b) after-sales service process for service sales
  • 05Have documents in the form of: a) machine specifications and/or a list of equipment, as supporting facilities b) photos of machines/equipment, as supporting facilities and c) a sales/rental agreement that proves control (ownership/rental) of machines/equipment as supporting facilities to provide services.

Ongoing obligations

5

Compliance and reporting duties throughout operation

  • 01Have proof of submission of mandatory validated Industrial Data every 6 (six) months in accordance with the laws and regulations in the industrial sector.
  • 02Ensure the safety and security of equipment, processes, production results, storage, and transportation, in accordance with applicable laws and regulations.
  • 03Possess a Quality Management System certificate (ISO 9001) within the scope of service provision.
  • 04Possess a competency training certificate for service provider human resources.
  • 05Possess a calibration certificate for equipment used for measurement.

Issuing authority

The authority that issues the license depends on your situation.

AuthorityApplies when
Minister/Head of AgencyThe industrial location is situated within a cross-border area between provinces.
Minister/Head of AgencyForeign Investment
GovernorThe industrial location is in the relevant province.
§ 08

Common questions about KBLI 38301

What is KBLI 38301?

KBLI 38301 (Pemulihan Material Barang Logam) is the 5-digit Indonesian Standard Industrial Classification code for metal scrap recovery. It sits within the Water Treatment, Wastewater Treatment, Waste Material Treatment and Recovery, and Remediation Activities category in the official KBLI 2020 taxonomy maintained by Badan Pusat Statistik (BPS).

Can foreign investors operate under KBLI 38301?

Yes — KBLI 38301 is fully open to foreign investment. A PT PMA may operate with up to 100% foreign ownership, subject to BKPM Reg. 5/2025 capital requirements (IDR 2.5 billion paid-up + IDR 10 billion+ commitment per KBLI).

What is the risk level of KBLI 38301?

KBLI 38301's risk levels per business scale: Micro Medium-Low, Small Medium-Low, Medium Medium-Low, Large High. Foreign-owned entities (PT PMA) must register at the Large scale.

What licenses does KBLI 38301 require?

NIB only — KBLI 38301 is a low-risk activity in OSS RBA, so the Business Identification Number alone suffices for operational licensing.

What is the minimum capital for a PT PMA under KBLI 38301?

BKPM Reg. 5/2025 default applies: IDR 2.5 billion paid-up capital at incorporation + IDR 10 billion+ total investment commitment per KBLI registered, realized over time and reported quarterly via LKPM.

How long does it take to register a business under KBLI 38301?

PT PMA setup typically takes 4-8 weeks: AHU registration (1-2 weeks), NIB issuance via OSS (immediate to 1 week), bank account opening (2-4 weeks). The licensing cycle for KBLI 38301 specifically takes 7 days at the Large business scale.

Is KBLI 38301 eligible for Indonesian tax incentives?

Not on the Tax Holiday or Tax Allowance priority lists. KBLI 38301 businesses pay the standard 22% PPh Badan; Super Tax Deduction (300% R&D / 200% vocational training) may still apply for qualifying expenses.

Which authority issues the KBLI 38301 license?

Authority depends on the investor profile. For PMA: Minister/Head of Agency. For domestic SME scale: typically Governor (for Provincial scope) or Regent/Mayor (Regency/City scope). Specific mapping is in §1 of this page.

What other permits beyond the NIB does KBLI 38301 need?

Beyond the NIB, no specific auxiliary permits (PB UMKU) are recorded for KBLI 38301. Sector-specific obligations may still apply — verify with the relevant ministry.

What KBLI codes are similar to 38301?

KBLIs in the same subgroup 3830: 38302 (Non-Metallic Material Recovery). These are closely related activities — see the related-codes section below for full list.

Emerhub advisor
Speak to Emerhub

Get your KBLI 38301 setup handled end-to-end.

Emerhub is a corporate-services provider in Indonesia. We handle PT PMA incorporation, licensing, tax registration and monthly compliance — so you focus on operating the business.
Get a quote for KBLI 38301